Market Roundup
• Trump announces deal to reopen federal government through Feb. 15
• Longtime Trump ally Roger Stone arrested for lying to Congress
• Queen sends a Brexit message to UK politicians: end your bickering
• IMF says Greece must remain vigilant on reform drive
• WTO head says risks to global economy from trade tensions are very real
• CA Nov Budget Balance, C$, -2.22 bln, -1.11 bln previous
Looking Ahead - Economic Data (GMT)
• No economic data scheduled
Looking Ahead - Events, Auctions, Other Releases (GMT)
• Jan 27 23:50 BOJ releases minutes of monetary policy meeting held on Dec. 19 and 20
Currency Summaries
EUR/USD: The euro strengthened against dollar on Friday, as investors moved to price in signs of a slowdown in economic growth and more caution from the European Central Bank about removing stimulus any further. The euro weakened broadly on his comments and fell to a two-month low against the dollar of $1.1289. But on Friday the single currency recovered, rising 0.96 percent to $1.1415. The dollar index , which measures the dollar against six other currencies, fell 0.83 percent. Immediate resistance can be seen at 1.1415 (21 DMA), an upside break can trigger rise towards 1.1453 (100 DMA).On the downside, immediate support is seen at 1.1389 (50% retracement level), a break below could take the pair towards 1.1348(38.2% retracement level).
GBP/USD: The pound rose sharply against greenback on Friday, after a report showed that Northern Ireland's Democratic Unionist Party had privately decided to offer conditional backing for Prime Minister Theresa May's Brexit deal next week.The Sun report pushed the pound 0.4 percent higher to $1.3200, its highest since Nov. 8. Sterling has risen about 1.8 percent this week, moving above $1.30 to the dollar on hopes Britain will avoid a no-deal Brexit on March 29.A weaker dollar also supported the British currency. Immediate resistance can be seen at 1.3196 (23.6% retracement level), an upside break can trigger rise towards 1.3238 (Oct 10th High).On the downside, immediate support is seen at 1.3074 (200 DMA level), a break below could take the pair towards 1.3013 (50% retracement level).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday, rebounding from a more-than two-week low the day before, as oil prices rose and investors turned more bullish on stocks. Global stocks rose as strong earnings helped to underpin investor sentiment in the face of growing signs that the global economy is slowing and a still unresolved trade dispute between the United States and China. At (1412 GMT), the Canadian dollar was last trading 0.6 percent higher at 1.3277 to the greenback, or 75.32 U.S. cents. The currency, which on Thursday touched its weakest intraday level in more than two weeks at 1.3375, traded in a range of 1.3274 to 1.3360.Immediate resistance can be seen at 1.3288 (11 DMA), an upside break can trigger rise towards 1.3360 (21 DMA).On the downside, immediate support is seen at 1.3211 (Ichimoku Cloud Base), a break below could take the pair towards 1.3160 (23.6% retracement level).
USD/JPY: The dollar weakened against the Japanese yen on Friday, as investors focus shifted to the Federal Reserve's policy meeting next week when the U.S. central bank is expected to leave interest rates unchanged. The Fed raised interest rates four times last year and has signalled it will probably lift borrowing costs twice in 2019, though some central bank officials have said they will be patient in raising rates. The dollar was 0.06 lower versus the Japanese yen at 109.57. Strong resistance can be seen at 110.24 (23.6% retracement level), an upside break can trigger rise towards 111.00 (Psychological level).On the downside, immediate support is seen at 109.52 (38.2% retracement level), a break below could take the pair towards 108.92 (50% retracement level).
Equities Recap
European shares on Friday hit their highest level in nearly two months as positive earnings, hopes of accommodative U.S. monetary policies and higher oil and metal prices help fuel a global rally.
UK's benchmark FTSE 100 closed down by 0.1 percent, the pan-European FTSEurofirst 300 ended the day up by 0.59 percent, Germany's Dax ended up by 1.4 percent, France’s CAC finished the day up by 1.2 percent.
Wall Street gained ground on Friday in a broad-based rally as investors were heartened by news that Washington would move to end the longest U.S. government shutdown in history.
Dow Jones closed up by 0.73 percent, S&P 500 ended up by 0.85 percent, Nasdaq finished the day up by 1.25 percent.
Treasuries Recap
U.S. Treasury yields rose on Friday, with 10-year yields bouncing from a one-week low, as Wall Street stocks climbed on upbeat company results, offsetting worries about slowing economic growth and the U.S.-China trade conflict.
The yield on benchmark 10-year Treasury notes was 4.3 basis points higher at 2.755 percent. It hit a one-week low of 2.700 percent on Thursday.
Two-year Treasury yields , which are particularly sensitive to traders' views on Fed policy, were up 4.2 basis points at 2.604 percent.
Commodities Recap
Gold jumped over 1 percent to a more than a seven-month high on Friday, briefly surpassing $1,300 as the dollar slid ahead of a U.S. Federal Reserve meeting next week where the central bank is widely expected to leave interest rates unchanged.
Spot gold rose 1.3 percent to $1,297.26 per ounce as of (1900 GMT), having earlier touched a peak of $1,300.30, its highest since June 15. The metal was on course for its best week in four. U.S. gold futures settled up 1.4 percent at $1,298.10 per ounce.
Oil prices edged higher on Friday as political turmoil in Venezuela threatened to tighten crude supply, but concerns over surging U.S. fuel stocks and global economic woes weighed on sentiment.
Brent crude oil futures ended the session at $61.64 a barrel, up 55 cents, or 0.9 percent. Brent, however, has shed about 1.7 percent since the start of trade on Monday and is on track to post its first week of losses in four weeks.
U.S. West Texas Intermediate (WTI) crude futures settled at $53.69 per barrel, up 56 cents, or 1.05 percent. WTI futures fell about 0.2 percent on the week, also posting the first week of declines in four weeks.
